A new statutory code of practice on dismissal and re-engagement came into force on 18 July 2024 - Statutory Code of Practice on Dismissal and Re-engagement.

The emphasis is on employers entering into meaningful consultation in the spirit of good faith with an open mind to find an agreed solution. Threats of dismissal to put pressure on employees to accept the proposed changes to their contracts are contrary to the Code. ‘Fire and re-hire’ should only be used as a last resort, with all alternatives being genuinely explored.

Whilst there is no stand-alone claim for breach of the Code, it must be taken into account by employment tribunals where relevant, including claims of unfair dismissal. A tribunal has the power to uplift compensation by up to 25% if they consider an employer has unreasonably failed to follow the Code.

Watch this space…

The new Labour government have pledged to take a more robust approach and legislate to ‘end fire and re-hire’ alongside replacing and strengthening the Code.

If you are currently contemplating changing existing terms and conditions of employment please contact the Employment Service Helpline prior to any discussions with your employees.